By james art
Posted: October 29, 2024, 3:23 am
Last updated on: October 28, 2024, 4:25 am
The owner of the Grand Sierra Resort in Reno is seeking financial help from the city to build a sports arena.
During meetings of the City Redevelopment Agency Board and City Council last week, representatives of the Meruelo Group, the parent company of Grand Sierra, located southeast of downtown Reno, presented their request for funding to build the 10,500-seat arena.
The Meruelo Group, owned by Cuban-American billionaire Alex Meruelo, whose real estate empire includes the Sahara on the Las Vegas Strip, is seeking $97 million in city allocations through a tax increment financing (TIF) plan.
Andrew Dees, Meruelo’s chief strategy officer, told the redevelopment committee that an arena at the casino resort would benefit Reno, making the $97 million allocation a reasonable bet for the city’s economic future. The company predicts the $400 million arena construction will create 5,300 construction jobs and 65 permanent full-time employees.
$1 billion development
The proposed Grand Sierra Resort arena would likely become home to the University of Nevada men’s basketball team and possibly a minor league hockey team (Meruelo owns the NHL’s Arizona Coyotes).
Meruelo has committed to opening a new stadium for the Wolf Pack men’s basketball program and insists the school won’t pay a dollar for the new digs. The Nevada women’s hoops team will remain at the Lawlor Events Center.
The $400 million arena is just part of Meruelo Group’s $1 billion expansion plan. Along with the indoor sports complex, the initiative includes a new hotel tower with 865 rooms, 300 affordable housing units, an ice rink and a 2,400-space parking garage.
Brian McArdle, the city’s revitalization manager, told the City Council that Redevelopment Agency officials have determined that Meruelo’s TIF application meets the necessary criteria to proceed to “participation agreement review and negotiation.”
The project is expected to serve as a significant economic driver for the city, promoting tourism, enhancing the local entertainment scene and acting as a hub for redevelopment while adding workforce housing,” McArdle wrote in conclusion.
The Reno City Council voted in favor of hiring a third party to conduct a thorough scoping review of the project. The contracted consultant will be tasked with carrying out an independent analysis of the project’s feasibility and financial projections, economic and regional impact, and proposing conditions for a public-private partnership and a participation agreement.
If awarded the $97 million, Meruelo Group plans to break ground on the arena in the spring and open the facility before the Nevada men’s basketball team begins its regular season in 2027. Other components of the project are slated for completion by 2035.
4-1-1 for TIF
According to the Lincoln Institute of Land Policy, a Massachusetts-based nonprofit think tank that seeks to “enhance the quality of life through efficient use, taxation and stewardship of land,” tax increment financing allows local governments to promote economic development by setting aside property tax revenue from projected increases in assessed values.
TIFs typically work best in blighted areas because property values tend to increase when investments are made. That’s why Reno Councilwoman Jenny Breckhus (District 1) voted against the Grand Sierra Arena application because the resort is not in a blighted neighborhood.
Dees said the proposed expansion of the casino resort would benefit all parts of the city.
“Over the next ten years, [Meruelo] intends to invest approximately $1 billion in a multi-phase development spanning sports and entertainment, retail, food and beverage, workforce housing and, most importantly, jobs. This will be the largest redevelopment project in Reno’s history,” Dees said.